Wattenburger v. Railroad Commission of Texas

231 S.W.2d 924, 1950 Tex. App. LEXIS 2247, 1950 WL 79074
CourtCourt of Appeals of Texas
DecidedJune 28, 1950
Docket9893
StatusPublished
Cited by5 cases

This text of 231 S.W.2d 924 (Wattenburger v. Railroad Commission of Texas) is published on Counsel Stack Legal Research, covering Court of Appeals of Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Wattenburger v. Railroad Commission of Texas, 231 S.W.2d 924, 1950 Tex. App. LEXIS 2247, 1950 WL 79074 (Tex. Ct. App. 1950).

Opinion

ARCHER, Chief Justice.

This is an appeal under Section 20 of Article 911b, Vernon’s Ann.Civ.St. by D. C. Wattenburger, trustee in bankruptcy for Mid-Continent Truck Service, as a party dissatisfied with an order of the Railroad Commission of Texas entered June 16, 1948, cancelling Specialized Motor Carrier Certificate No. 5542 issued to C. H. Clary, Eva Maud Clary, and Charles Herman Clary, Jr., doing business as Mid-Continent Truck Service, on September 3, 1947.

Trial was to the court without a jury, and at the conclusion thereof the court rendered judgment upholding the validity of the order of the Commission and decreeing that appellant take nothing by his suit. Appellant duly excepted and gave notice of appeal, and requested findings of fact and conclusions of law.

The court duly made and filed findings of fact and conclusions of law, and at the request of appellant additional findings of fact and conclusions of law were made and filed.

*926 The appeal is founded on the error of the court assigned in six points by appellant.

The first and second points are directed to the lack of evidence or of substantial evidence to support the order, and the order is therefore void. The third point is that the order is arbitrary, unreasonable, unjust and void. The fourth is to the effect that appellant was deprived of constitutional due process, by the way and manner the Commission acted in cancelling certificate No. 5542. The fifth point is that the certificate is a property right protected by the constitutional requirement for due process of law; and the sixth and final point is that the order of cancellation is void and that the Commission was without jurisdiction to make or enforce the same because Section 12(b) of Article 9lib, V.A.C.S. of Texas, is an unconstitutional delegation of strictly judicial functions to a Commission belonging to the Executive Branch 'of the Government, in violation of the Constitution, Articles 2 and 3, Section 1, Vernon’s Ann. St.

We believe that the Commission had j urisdiction over the subj ect matter and the power to enter the order, and that Article 911b, supra, is constitutional. Texas & P. Motor Transp. Co. v. Railroad Commission, 124 Tex. 126, 73 S.W.2d 509; T.S.C. Motor Freight Lines v. Vanway Express Co., Tex.Civ.App., 148 S.W.2d 899. We, therefore, overrule assignments Nos. 5 and 6.

The first, second and third points are briefed together and will be determined by us accordingly.

As is stated by the appellant, the facts in the case are substantially without dispute. Herman Clary had been operating Specialized Motor Carrier Permit No. 5542 since 1931, with his own trucks. He was in the Army from February 1942 until March 1943. He was unable to purchase trucks and began leasing trucks, owner operated, paying the owner 80% of the gross receipts. Insurance was carried in the name of the Mid-Continent Truck Service. Part of the insurance was charged to the truck owners. All trucks carried the name of the company and had the usual plates.

Since 1931 Clary had been in the trucking business and owned his trucks.

On July 18, 1940, Special Commodity Permit No. 12934 was granted to C. H. Clary, and contained a clause as follows: “All equipment to be operated under the authority herein granted is to be restricted to that owned by the holder of such permit and shall not exceed twenty-three trucks.”

This Special Commodity Permit was converted into a Specialized Motor Carrier Certificate, and had a clause requiring that all equipment shall not exceed the number as shown by the last equipment report.

The certificate was originally issued to C. H. Clary in 1941. The authority was amended before and after the transfer and the certificate was issued September 3, 1947, to C. H. Clary, Eva Maud Clary and Charles Herman Clary, Jr., doing business as the Mid-Continent Truck Service.

On August 17, 1942, the Commission made a general order artthorizing motor carriers to lease equipment for the purpose of making extra trips, without registration, but that equipment leased for a longer period than 72 hours be registered and carry identification plates and cab cards. This general order was cancelled by Order No. 74, dated September 17, 1945. This order authorized carriers to lease equipment of other persons and other carriers for extra trips, but required registration and the display of identification cards and plates.

Order No. 74 was cancelled by order entered June 23, 1947. This order is, in part, as follows, and authority to operate ceased:

“June 23 ’47
* * * * * *
“The hearing was held at the Texas State Capitol in Austin, Texas, on Friday, May 30, 1947, at which time numerous carriers appeared by representatives and by their attornej^s and made statements and recommendations in favor of and opposing the cancellation of General Order No. 74, which authorized the lease of equipment by this expressed rule of the Commission. The General Order No. 74 was originally issued as an emergency matter on August 17, 1942, authorizing short leases without registration, and later on September 17, 1945, that *927 portion of the order was cancelled and the order was rewritten in its present form. The Commission is now of the opinion that the entire order should be cancelled. Accordingly, it is
“Ordered By the Railroad Commission of Texas that General Order No. 74 as rewritten on September 17, 1945, BE, and the same is hereby in all things Cancelled.”

On June 16,1948, the Commission entered the order in suit, cancelling the certificate No. 5542, pursuant to a hearing had on April 20, 1948. The transcript of testimony in the hearing was, by stipulation, admitted in evidence at the trial for limited purposes and so considered by the court.

On the trial of the case the court heard the witnesses and had transcript of the testimony at the hearing before him.

The court made fact findings that the certificate No. 5542 was issued to C. H. Clary; was subsequently transferred to Mid-Continent Truck Service; that the truck service owned no trucks or equipment, but carried on business solely by means of trucks leased; that 80% of gross operating revenues was paid to the driver-owners, less some deductions for insurance, taxes, etc.; that the Commission authorized the leasing of equipment to supplement owned equipment for a term not to exceed 72 hours, without approval; that on September 17, 1945, the Commission cancelled this authority in the order of August 17, 1942, but permitted the leasing of equipment with its approval; that on May 30, 1947, a hearing was had in relation to the cancellation of Order No. 74, and in which C. Herman Clary participated by giving testimony and was represented by counsel. Order No. 74 was cancelled on June 23, 1947.

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Bluebook (online)
231 S.W.2d 924, 1950 Tex. App. LEXIS 2247, 1950 WL 79074, Counsel Stack Legal Research, https://law.counselstack.com/opinion/wattenburger-v-railroad-commission-of-texas-texapp-1950.